The U.S. Energy Industry Cant Afford A Trade War

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The Wall Street Journal, citing unnamed Chinese officials, said Beijing was considering steps including holding up licences for USA companies, delaying approvals of mergers involving U.S. firms and stepping up border inspections of American goods.

Investors have been particularly anxious that the trade row could harm an already slowing Chinese economy in a blow to global investment and growth.

Senate Finance Committee Chairman Orrin Hatch, of Utah, called the new levies "reckless" and not "targeted".

"The last thing America's manufacturing workers need is an escalating trade war", said NAM President and CEO Jay Timmons.

U.S. Trade Representative Robert Lighthizer on Tuesday evening unveiled a proposed list of more than 6,000 products to be hit with 10-per-cent import taxes.

The previous round of tariffs: The Trump administration last week imposed 25 percent tariffs on $34 million in Chinese goods, prompting Beijing to impose retaliatory tariffs of the same amount on USA imports.

"Trade experts we have consulted point to the potential for anti-U.S. social media campaigns, delays or blockage of regulatory approvals, travel bans, investment restrictions, among other options", Raymond James analyst Ed Mills said in a report.

"Concerns over trade and trade wars are really having an adverse effect, less so on the USA markets than the global markets, but it is certainly taking a bite".

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Officials later issued a list of thousands of Chinese products the White House wants to hit with new tariffs, including hundreds of food products as well as tobacco, chemicals and coal.

China slammed the USA threat to expand tariff hikes to imports including apples, fish sticks and French doors as a "totally unacceptable" escalation of their trade battle on Wednesday and vowed to protect its "core interests".

China's commerce ministry said it was "shocked" by Washington's latest move, which comes just days after both countries imposed tit-for-tat tariffs on $34 billion of each other's goods, and ups the ante in a heated trade dispute that has rattled global financial markets.

While disclosing a strategy of "splitting apart different domestic groups in United States", the notice explains: "The trade conflict is really a war against China's rise, to see who has the greater stamina".

While China's theft and coercion of intellectual property from foreign companies is a widely acknowledged problem, trade experts are largely skeptical of Mr. Trump's strategy to deal with it through punitive tariffs. That means China's imports of USA goods are so small that Beijing "cannot match fresh United States tariffs", said Vishnu Varathan of Mizuho Bank in a report. That raises the risk China could retaliate in other ways, such as placing restrictions on USA companies doing business in the country.

President Donald Trump vowed to hit back on a growing list of products after China retaliated in kind for the first round of 25 percent tariffs on $34 billion worth of imports that Washington imposed last week.

"Tariffs are taxes, plain and simple". Those nations also have retaliated. China received more USA crude oil in 2017 than the third- and fourth-largest importers combined, the United Kingdom and the Netherlands. China responded to that action by imposing tariffs on $34 billion of US products, and the country has vowed to take countermeasures against the current action as well.

Grassley said the Trump administration tariff fight has "a very detrimental effect on current markets" and that the impact is rippling through other industries in his state beyond agriculture.

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